Study on Financial Literacy: A Comparative Study

Title:- Study on Financial Literacy: A Comparative Study

Author- Rutuja Yadav (21230023495)

               Aakash Yeole (21230023119)

               Gaurang Patel (21230023479)

Batch- F3

Introduction- Financial literacy refers to the ability to understand and use various financial skills, including budgeting, saving, investing, and managing debt. It encompasses the knowledge and capabilities that enable individuals to make informed and effective financial decisions. A financially literate person is equipped to navigate the complexities of personal finance, plan for the future, and adapt to changing economic circumstances.

Objective– To understand the impact of financial literacy on youth.

Literature review– The current issue of financial literacy is addressed at the international level and trend suggests that increasing the level of population knowledge in this direction can be more than useful. Financial literacy is a set of knowledgeable and skills necessary for people to financially secure themselves.

Testing of Hypothesis:

H0: µ = 3

H1: µ ≠ 3

Data Collection-We collected primary data from 100 students,each was asked the following 5 questions:

  • I invest in Mutual Funds.
  • I do trading in stock in the share market.
  • I take financial decisions of myself.
  • I find difficult to understand financial jargons.
  • I stay updated on financial news and trends.

Data Analysis– These 5 questions were asked in Google form from students and for every question we calculated standard deviation, standard error, mean and t-stat.

Conclusion–

Question

Mean

Std Dev

Std Error

T-stat

Result

I invest in Mutual Funds

3.37

1.27

0.13

0.37

Neutral

I do trading in stock in the share market

3.19

1.25

0.12

0.19

Neutral

I take financial decisions of myself.

3.62

1.02

0.103

0.62

Neutral

I find difficult to understand financial jargons

3.23

1.07

0.107

0.23

Neutral

 I stay updated on financial news and trends.

3.43

 

1.11

0.117

0.43

Neutral

 

Ques 1– I invest in Mutual Funds.

Result- For question 1, we accept the null hypothesis. T-stat provided is 0.37, it falls within the range of -1.96 to 1.96, we conclude that people are neutral regarding the null hypothesis.

People are neutral regarding investments in Mutual Funds.

Ques 2– I do trading in stock in the share market.

Result- T-stat is 0.19 which is between 1.96 and – 1.96 we accept the null hypothesis. It means people are neutral towards the trading in the stock market.

Ques 3– I take financial decisions of myself.

Result- For question 3,we accept the null hypothesis. T-stat is 0.62 which is between– 1.96 and 1.96 .It means people are neutral financial decisions for themselves.

Ques 4– I find difficult to understand financial jargons.

Result- For question 4, we accept the null hypothesis. T-stat provided is 0.23 it falls within the range of -1.96 to 1.96, we conclude that people are neutral regarding understanding financial jargons.

Ques 5– I stay updated on financial news and trends.

Result- For question 5, we accept the null hypothesis. T-stat provided is 0.43, it falls within the range of -1.96 to 1.96, we conclude that people are neutral regarding staying updated on financial news and trends.

References–

 

 

 

 

 

Leave a comment